EXAMPLES OF SPECIFIC POLICY AND PRACTICE 1a DRIVERS OF BIODIVERSITY LOSS Mainstreaming and sustainable use: • Agricultural frontier is expanding into sensitive ecosystems because of weak land use planning (Argentina) • Non-selective fisheries alters food chains and ecosystems because existing fishing policies are poorly enforced (Costa Rica) • Large-scale mining is promoted in pristine, sensitive ecosystems because of powerful mining interests and weaker environmental interests (Ecuador) • Mining affects water resources because full environmental impact assessments are not conducted or are incomplete (Peru)
EXAMPLES OF SPECIFIC POLICY AND PRACTICE 1a DRIVERS OF BIODIVERSITY LOSS Protection: • Protected areas are isolated, with few connectivity corridors because of social pressures for land (India); • Invasive species are spreading throughout protected areas because staff do not have resources to prevent their spread (Mexico); • The protected area network does not adequately represent the biodiversity in the country because of competing interests (US); • Poaching and illegal trade threaten the viability of elephant populations because of market forces (many African countries) • The protected area network is not yet designed for climate resilience because of inadequate capacity (Nepal).
REFLECTION POINT
Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • A government lacks political will groups to mainstream biodiversity; does not place biodiversity high • Public media, perception on agenda • Good governance • Inter-sectoral OPPORTUNITY coordination • A new government is elected • Public participation • A politician commits to • Information about values ambitious goals at a high-level meeting • Utilization of funding
Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • Powerful interests (e.g., mining) groups do not acknowledge the value • of biodiversity, and lobby Public media, perception against it • Good governance • Inter-sectoral OPPORTUNITY coordination • Powerful interests (e.g., • Public participation tourism) recognize and promote the value of biodiversity to their • Information about values industry • Utilization of funding
Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • The public is unaware of groups biodiversity issues, and • biodiversity is not covered by Public media, perception local media • Good governance • Inter-sectoral OPPORTUNITY coordination • The public understands key • Public participation biodiversity issues, and is supportive of biodiversity • Information about values conservation • Utilization of funding
Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • Corruption within government groups agencies and law enforcement • prevents effective decisions Public media, perception about biodiversity • Good governance • Inter-sectoral OPPORTUNITY coordination • The government routinely • Public participation upholds biodiversity-related laws and policies , and is • Information about values transparent about the costs and • Utilization of funding tradeoffs of decisions
Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • There is competition between groups sectors (e.g., mining vs. forestry • vs. biodiversity), and little or no Public media, perception coordination • Good governance • Inter-sectoral OPPORTUNITY coordination • There is an effective multi- • Public participation sectoral working group in place, and sectors coordinate • Information about values information well • Utilization of funding
Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • There are no effective means of groups engaging the public in key • biodiversity decisions Public media, perception • Good governance • Inter-sectoral OPPORTUNITY coordination • Public decision-making • Public participation procedures and mechanisms are developed and fully used • Information about values • Utilization of funding
Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • The government and public are groups unaware of the true value of • biodiversity to their societal Public media, perception goals and agenda • Good governance • Inter-sectoral OPPORTUNITY coordination • There is clear and compelling • Public participation information about the value of biodiversity, and the • Information about values government is aware of these • Utilization of funding values
Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • The government does not groups strategically and fully take • advantage of potential funding Public media, perception • Good governance • Inter-sectoral OPPORTUNITY coordination • Utilization of funding is fully • Public participation aligned with national priorities for biodiversity and • Information about values mainstreaming • Utilization of funding
REFLECTION POINT
INSTITUTIONAL REVIEW
1b) What are the key institutions, Steps in in mobil ilizin ing resources agencies and organizations, and REVIEW BROADER CONTEXT what is their relation to the status 1a) Identify sectoral drivers of loss quo and to the new state? 1b) Assess institutions and actors 1c) Review biodiversity expenditures ASSESS COSTS AND GAP 2a) Assess costs of strategies and actions Ministry of 2f) Calculate the financial gap Agriculture MOBILIZE FINANCIAL RESOURCES Chemical Agricultural 3a) Identify finance actors and mechanisms companies associations 3b) Develop resource mobilization plan
INSTITUTIONAL REVIEW: KEY QUESTIONS 1. Which actors are responsible for the existing status quo, and which will likely be responsible under the new projected state? 2. Which actors and institutions currently benefit from , and pay the costs of , biodiversity in the status quo, and which will likely benefit from, and pay the costs of, the new projected state? 3. What role do key finance actors have in setting budget priorities , determining costs , accessing and disbursing resources and spending and reporting on funds ? 4. What are the existing finance capacities and capacity needs of key finance actors under the status quo and under the new projected state?
IDENTIFYING KEY ACTORS AND INSTITUTIONS 2. Those who already do, or 1. Those who are or might be might in the future, benefit responsible for, or dependent from biodiversity under the upon, drivers of change status quo or from the projected new scenario 3. Those who already do, or 4. Those who have a key role in who might in the future, pay for finance, either under the status biodiversity under the status quo, or under the projected quo or in the projected new new scenario scenario
IDENTIFYING KEY ACTORS – FROM DRIVERS Gorilla poaching : key actors include poachers, communities, protected area officials, police, national and international NGOs, each stage along the supply chain, trade officials, treasury, Ministry of Wildlife Water pollution : key actors include chemical companies, Ministry of Agriculture, Ministry of Finance, lobbyists, Department of Health and Sanitation, farmers and landowners, Department of Forests, Department of Fisheries
MAP INSTITUTIONAL ARRANGEMENTS
WHY IT’S IMPORTANT TO IDENTIFY WHO BENEFITS AND PAYS POLLUTER PAYS BENEFICIARY PAYS Direct Ecosystem Fees Ecosystem Services Markets ECOSYSTEM Beneficiary pays for ecosystem Polluter pays for damages to SERVICES services that flow to them ecosystems by buying an offset e.g. payments for watershed e.g. water quality trading, forest services carbon Direct Biodiversity Fees Source: GCP 2012 BIODIVERSITY Biodiversity Markets Beneficiary pays for access to Polluter pays for damages to biodiversity biodiversity by buying an offset e.g. ecotourism fees, hunting e.g. fisheries quota trading; licenses biodiversity offset
CHECKLIST OF INSTITUTIONS AND ACTORS Public actors: Market actors: • Central government & ministries • Businesses and industry • District/local government • Trade associations • Governmental institutions • Lobby associations • Public research institutions & • Trade unions • Zoos, gene banks academia Private sector actors: Donor actors: • Households • Multilateral institutions (e.g. • Private foundations WorldBank, UNDP) • Private communities • Bilateral donors • Non-governmental organizations • Private foundations
REFLECTION POINT
EXPENDITURE REVIEW: ESTABLISHING A BASELINE
1c) What is the scope, amount and Steps in in mobil ilizin ing resources effectiveness of biodiversity REVIEW BROADER CONTEXT expenditures for each key finance 1a) Identify sectoral drivers of loss actor? 1b) Assess institutions and actors 1c) Review biodiversity expenditures ASSESS COSTS AND GAP 2a) Assess costs of strategies and actions Ministry of 2f) Calculate the financial gap Agriculture MOBILIZE FINANCIAL RESOURCES Chemical Agricultural 3a) Identify finance actors and mechanisms companies associations 3b) Develop resource mobilization plan
DETERMINE THE FINANCIAL GAP RESOURCES Financial gap TIME
Baseline expenditures for PAs in Belize Projected BAU funding
Biodiversity expenditure review A compilation of all public and private expenditures on biodiversity-related activities
Steps in an expenditure review Step 1 : Identify relevant finance actors Tourism Forestry Agriculture Fisheries Protected areas Water
Steps in an expenditure review Step 2 : Extract budgetary data from relevant finance actors, including ministries, agencies, entities
Steps in an expenditure review Step 3 : Develop a single coherent system for coding and processing all data
Steps in an expenditure review Step 4 : Analyze all relevant expenditures from the past, and project into the future expenditures past projected future
Expenditure review: 3 key issues Relevancy : Some expenditures are more relevant to biodiversity than others Example : Protected area management has high relevancy to biodiversity; water quality control efforts might have only low relevancy
Expenditure review: 3 key issues Effectiveness : Some expenditures are more effective in conserving biodiversity than others Example : Tree planting efforts that fail
Expenditure review: 3 key issues Environmentally harmful expenditures : Some expenditures harm biodiversity Example : Subsidies that promote excessive fertilizer use
REFLECTION POINT
IDENTIFYING THE COST OF STRATEGIES IN THE NBSAP AND DETERMINING THE GAP
What is the cost of specific Steps in in mobil ilizin ing resources strategies and actions REVIEW BROADER CONTEXT 1a) Identify sectoral drivers of loss Biodiversity 1b) Assess sectoral institutions and actors mainstreaming 1c) Review biodiversity expenditures Protection ASSESS COSTS AND GAP Restoration 2a) Assess costs of strategies and actions 2b) Calculate the financial gap Access and benefits sharing (ABS) MOBILIZE FINANCIAL RESOURCES Enhancing 3a) Identify finance actors and mechanisms 3b) Develop resource mobilization plan implementation
2a-e 2a-2e FROM STRATEGIES AND ACTIONS TO COSTS Actions Cost elements Cost elements Cost elements Cost elements Actions Sub-strategies Cost elements Cost elements Actions Cost elements Cost elements Actions Cost elements Cost elements Cost elements Cost elements Cost elements Cost elements Actions Actions Sub-strategies Cost elements Cost elements Actions Cost elements Cost elements Strategies Cost elements Cost elements Actions Cost elements Cost elements Cost elements Cost elements Actions Sub-strategies Cost elements Cost elements Actions Cost elements Cost elements Actions Cost elements Cost elements Actions Cost elements Cost elements Cost elements Cost elements Sub-strategies Actions Cost elements Cost elements Actions Cost elements Cost elements Cost elements Cost elements Actions Cost elements Cost elements Actions
Protection strategy : Create connectivity corridor in order to maintain viable populations of wide-ranging species Create connectivity Cost elements High Med Low corridor Staff, materials, travel, Land acquisition 250K 175K 125K land acquisition Inventory and site analysis Staff, materials, travel 125K 100K 75K Alternative livelihood program for communities within Staff, materials, travel 450K 350K 250K corridor
Protection strategy : Create connectivity corridor in order to maintain viable populations of wide-ranging species ACTION : Conduct inventory and site analysis Conduct inventory Cost elements High Med Low Conduct site-level inventory Staff time – 100 days 25,000 15,000 10,000 Travel – 2500 miles 25 camera traps 5000 4000 3000 Conduct GIS inventory Staff time – 10 days 2500 1500 1000 Updated GIS layers 4500 3200 1800 Gather all existing data Staff time – 50 days 12,500 7,500 5,000 Legal analysis of boundaries Legal time – 3 days 1500 1200 900
Mainstreaming strategy : Reduce impacts of intensive agriculture by developing a training program to help farmers transition to low-impact agricultural practices Develop agricultural High Med Low Cost elements training program est. est. est. Develop best practices and Staff, materials, travel 250K 175K 125K guidelines Develop training curriculum Staff, materials, travel 125K 100K 75K on low-impact agriculture Conduct training of trainers Staff, materials, travel 450K 350K 250K
Mainstreaming strategy : Reduce impacts of intensive agriculture by developing a training program ACTION: Conduct training of trainers Conduct training of Cost elements High Med Low trainers Participants and trainers Travel and DSA 60,000 50,000 40,000 Workshop venue Hotel 5000 4000 3000 Printed material Photocopying, binding 5000 4000 3000 Translations Translators, 4 days 2000 1000 800 Translation of materials 10000 8000 3000 Field trip Driver, gas, guide 7200 3600 2200 Follow up webinar Web hosting costs 2500 1200 0
DETERMINE THE FINANCIAL GAP RESOURCES Financial gap TIME
Factoring in uncertainty and estimates gap $ past future
Costing: 6 key issues One-time vs. recurring : Some costs occur only once, while others are recurring Example : Tree planting that occurs once vs. a multi-year afforestation process
Costing: 6 key issues Timing : Not all costs will occur at once – some may be phased in over time Example : Gradual phasing out and eventual elimination of harmful subsidies over time
Costing: 6 key issues Sequencing and prioritizing : Not all strategies and related costs are equal…planners should prioritize and sequence the most urgent actions Example : Urgent restoration for critical ecosystems prioritized over the creation of a new PA in an intact area
Costing: 6 key issues Return on investment : An activity-based cost accounting model (input-output) can be used to calculate return on investment Example : It may be cheaper to invest in protected areas for drinking water than a new water treatment facility
Costing: 6 key issues Cost of inaction : Planners may consider multiple investment scenarios, but should also consider the costs of inaction Example : By not investing in protection and restoration, future options may be much more expensive, or closed altogether
Costing: 6 key issues Time horizon for analysis : Planners must carefully consider their time horizon when weighing tradeoffs Example : Fisheries will recover with adequate protection, but this must be analyzed over several years
REFLECTION POINT
INNOVATIVE FINANCE: AN OVERVIEW
BIODIVERSITY FINANCE GAP The High Level Panel on Biodiversity Finance estimated a cost of $150 – 450 billion annually through 2020 to achieve the Aichi Targets. Biodiversity ODA is less than $5 billion annually – less than 5%.
CONSERVATION FINANCE FLOW – $51.8 billion Direct market – $3.8bb Offset markets $3.3bb Green commodities – $6.6bb Biodiversity fees $.3bb Ecosystem service fees $.1bb Allowances auctions $.05bb Debt-for-nature < $.1bb Bio-prospecting $.05bb Philanthropy – $1.7 bb ODA – $6.3 Agricultural subsidy reform – $7.8 Domestic budget allocation – $25.6 Source: GCP 2012
GLOBAL BIODIVERSITY VS. GLOBAL BIODIVERSITY FINANCE Source: GCP 2012
Protected Area Global Cost Estimates 34 bb/yr
Roughly half the costs are funded ~ 17 bb/yr
Protected area costs as a percentage of GDP 20 highest GDP countries = <.0013% Global GDP = <.0005%
Many untapped sources of revenue A surcharge of .007% would fully Tourism = 2.4 trillion fund all protected areas globally
Overseas Aid ODA in context • US$ 1,400 mm PAs Environmental Environmental ODA • US$ 1,400 mm Perverse subsidies and incentives ODA
Financial gap for PAs in Belize • Current funding: $ 9mm • Current finance gap: $19 – 29 mm • Gap: $10-20mm
Financial gap for PAs in Belize Financial gap from projected growth in costs Financial gap Projected BAU funding
Filling the financial gap for PAs in Belize 3a
Range of finance mechanisms Positive tax incentives Negative tax incentives Fiscal reform • Tax credits • Taxes on products, services • Reduction of subsidies that • Tax deductions that harm biodiversity harm biodiversity Procurement policies Cap and trade PES schemes • Government, business • Limit on goods or service • Beneficiaries pay for cost procurement and trade in marketplace of maintaining ecosystems Market certification Biodiversity offsets Fines and fees • Market premium, access • Exchanges of equivalent • Fees that discourage for sustainable practices protection by business unsustainable practices Conservation easement Voluntary fees Mandatory fees • Compensation for long- • E.g., contribution drop • E.g., Airport departure fees term conservation boxes, hotel/tourism fees) that fund protected areas
Feasibility screening criteria Financial considerations Legal considerations Administrative • How much revenue will it • Is it legally feasible within • How difficult will it be to generate? the current system? administer, enforce, • How stable is the revenue? • Does it require new collect? • What are the initial costs? • Are there enough trained legislation? • Is it possible to simply use staff? an executive order? Social considerations Political considerations Environmental • What will be social • Is there political will? • What are environmental • Will the funds be impacts? impacts involved in • Who will pay? redirected to the correct implementation? • Will the mechanism be • Can safeguards be put in purpose? • Is monitoring possible? viewed as equitable? place?
Toward a resource mobilization plan
Steps in in mobil ilizin ing resources Identify the key finance opportunities, actors and REVIEW BROADER CONTEXT mechanisms, and identify 1a) Identify sectoral drivers of loss 1b) Assess sectoral institutions and actors who will pay for what costs 1c) Review biodiversity expenditures ASSESS COSTS AND GAP 2a) Assess costs of strategies and actions 2b) Calculate the financial gap MOBILIZE FINANCIAL RESOURCES 3a) Identify finance actors and mechanisms 3b) Develop resource mobilization plan
Develop a coherent resource Steps in in mobil ilizin ing resources mobilization plan REVIEW BROADER CONTEXT 1a) Identify sectoral drivers of loss The National Biodiversity Resource Mobilization Plan 1b) Assess sectoral institutions and actors for Timor-Leste (2013 – 2020) 1c) Review biodiversity expenditures ASSESS COSTS AND GAP 2a) Assess costs of strategies and actions 2b) Calculate the financial gap MOBILIZE FINANCIAL RESOURCES 3a) Identify finance actors and mechanisms 3b) Develop resource mobilization plan
Typical view of resource mobilization Identify Develop Find problems strategies funding But resource mobilization should start EARLY in the NBSAP process
1. Identify steps you can take NOW to integrate with the NBSAP revision process • Identify sectors that might pay for biodiversity • Identify potential finance actors • Engage finance actors early in the process • Identify potential finance mechanisms • Prepare institutions for expenditure review • Develop systems for aggregating finance data
2. Identify potential synergies and entry points
HLP Findings - Synergies • “Biodiversity and ecosystems can be a powerful engine for delivering on sustainable development goals at scale, particularly food security, water security, livelihoods and disaster risk reduction, among other development goals” • “Enhanced synergies and alignment across sectors are needed for reaching biodiversity targets. There is significant alignment between the Aichi Targets and other policy agendas, including development, growth, poverty alleviation, climate change, agriculture, fisheries, water and health”
Finding synergies • Which desired outcomes do the NBSAP and other sectoral plan share? • How can the strategies within an NBSAP help achieve outcomes in the sectoral plan and vice versa? • What economic and political opportunities does the sectoral plan create for the NBSAP and vice versa? • Which strategies are in conflict with each other? • Where are there overlaps in spatial priorities? • Are there overlaps in finance actors and mechanisms?
Potential areas for synergies • • National development plans Manufacturing plans • • National climate-related plans Water management plans • • Food security plans Fisheries management plans • • Water security plans Rangeland management plans • • Rural health plans Wildlife crime plans • • Disaster risk reduction plans Species recovery plans • • Invasive species plans Forestry plans • • Tourism and ecotourism plans Agricultural plans • • Land-use plans and spatial plans National protected area plans • • Integrated coastal development plans National restoration plans • • Energy and mining plans Waste management plans
Finding entry points • What are the key issues and entry points within a country? o Flooding in Thailand, Uganda o Jobs in South Africa o Livelihoods in India o Tourism in Botswana, Namibia o Water in Costa Rica, Colombia o Disaster risk reduction in The Philippines, Nepal
3. Develop an action plan that can help advance you toward a resource mobilization plan Stocktaking and next steps on: • valuation of biodiversity and ecosystems • identifying policy and practice drivers of change • identifying key actors and institutions • reviewing expenditures • assessing the cost of NBSAP strategies and actions • identifying financial gaps • identifying and scaling up finance mechanisms • integrating resource mobilization plans into national plans • Identifying national synergies and entry points
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